REQUIREMENT TO PAY COSTS OF ADJUDICATION INCONSISTENT WITH SECTION 108 OF THE 1996 ACT

In Yuanda (UK) Co Ltd v WW Gear Construction Ltd [2010] EWHC 720 (TCC), [2010] All ER (D) 157 (May) Mr Justice Edwards-Stuart held that a clause which rendered a contractor who made a reference to adjudication ‘fully responsible for meeting and paying both his own and the Employer’s legal and professional costs in relation to the Adjudication’ was in conflict with the requirements of s108 of the Housing Grants Construction and Regeneration Act 1996. Given the lack of compliance with the requirements of s108 the adjudication provisions in the contract were replaced in their entirety by the provisions of Part I of the Scheme for Construction Contracts.